israel's startup and vc ecosystem
TRANSCRIPT
Israel’s Startup and VC Ecosystem
SOURCE – kyweb.fi
SOURCE – Wikipedia, Retrieved 12 Feb 2015
About Israel
• 470 km long, 135km wide at its widest point
• Population ( at 2014) = $8.3M
• 74.9% Jewish, 20.7% Arab, 4.3% Others
About Israel
• Standard of Living: • 1st in the Middle East • 5th in Asia
• 13th Highest Life Expectancy in the World • 43rd Largest Economy in the World • Israel invests 4.7% of its GDP in R&D à Highest in the World • Highly educated workforce: Israel is ranked 2nd in the world for
availability of qualified scientists and engineers • Mandatory Army for girls (aged 18-20) and boys (aged 18-21).
SOURCE – Wikipedia, Retrieved 12 Feb 2015
2nd �Best Startup Ecosystem in the world
$9.8b� Raised by Companies that went Public
$15b� In Exits through M&As
VC Deals closed 688 �
Israeli Startup Ecosystem in 2014
18 �Israeli Companies went Public
SOURCE – Forbes, Bloomberg InnovaFon Index
Raised in VC Funding $3.4b�
39 � Companies raised more than $20M 5th �Most Innovative
Country
“If you’re going to the Middle East to look for oil, you can skip Israel. If you’re looking for brains, look no further”
— WARREN BUFFETT
SOURCE – TwiTer, OurCrowd Slideshare PresentaFon
What Investors Are Saying
SCALE-UP NATION EXIT NATION
TO
FROM
Israel’s Ecosystem is Evolving
Fundraising by Israeli High-Tech Startups – 2004 to 2013
SOURCE – IVC Research Center
“Scale-Up” Nation “Scale-Up” Nation
Fundraising by Israeli High-Tech Startups - 1st Week of Jan 2015
SOURCE – GEEKTIME.com
“Scale-Up” Nation
# of Exits and Exit Amounts in $B from 2005 to 2014
SOURCE – IVC Research Center
“Exit” Nation
3rd Largest source of listings on NASDAQ after North America & China in 2013
SOURCE – Financial Times
“Exit” Nation
All Israeli Technology Exits – 2004 to 2013
SOURCE – DeloiTe Insights
“Exit” Nation
Startup Success Rate
SOURCE – IVC Research Center
Success defined by Investors as a real positive rate of return on investments
• NDS, bought by Cisco for $5B • Chroma*s Networks, acquired by Alcatel Lucent for $4.5B • Waze, acquired by Google for $1B • Mobileye raised $890M at IPO • Trusteer, acquired by IBM for $800M • Retalix, acquired by NCR for $800M • Wix, IPO on NASDAQ and currently floaFng around $700M • Objet, merged with Stratasys for $640M • MediaMind, acquired by DG for $520M • Zoran, acquired by CSR for $485M • XtremIO, acquired by EMC for $450M • Omrix, acquired by J&J for $440M
Most Successful Exits
• Israeli Hi-Tech Ecosystem & Incubator Network • High Rate of Commercialization of Research • HotBed for R&D Innovation • Proactive University Technology Transfer Offices • The People
• Compulsory Army for Men & Women à Hands-on Leadership, Managerial and Technical Skills
• “Chutzpah” à Go-getting, Entrepreneurial, Challenge Status Quo • Flat business structure à Informal but Professional style
What Makes Israel “Different”?
Why Israel?
Technology Incubators Sector Breakdown of Technology Incubators in Israel in 2013
SOURCE – DeloiTe Insights
R&D Centres in Israel
SOURCE – FinPro Slideshare PresentaFon
PixVC’s Portfolio in Israel
